Cramer says this grocery stock can ‘out Walmart, Walmart’. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
Squawk on the Street
Cramer's Morning Take: Costco 6/12/24
Cramer says this grocery stock can ‘out Walmart, Walmart’. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
CNBC Investing Club Disclaimer
- Duration:
- 4m
- Broadcast on:
- 12 Jun 2024
- Audio Format:
- mp3
What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Hey, it's Kramer, and this is my morning take on the market from today's CBC Investing Club morning meeting. Just one of the things that happened a few years ago was a short squeeze on GameStop, and I know to think that the whole market couldn't have a short squeeze is odd, but because of these CPI numbers, the confidence CPI in the Fed meeting and the numbers being a week, and interest rates going down so much, we have the equivalent of a short squeeze with the mega caps and also the home builders, and it's worth pointing out that's what it feels like. It is interesting seeing the magnitude of the moves in Apple and Nvidia giving how the billions of dollars it does take to move those stocks, but we're also seeing it play out with yields down in many other sectors as well. The home builders are on fire, Stanley Black and Decker, when we added to the position last week in the low 80s, we said all it takes is a rate cut. Yeah, I mean, I think people, if there's why do we own stocks that are underperforming, because when we have a move like this, we must be in something that can jump, but it will be Wells Fargo, whether it be Stanley Black. Yeah, no, certainly the banks should benefit as well, and why are we talking rate cuts while CPI came in much cooler than expected, flat month over month, core was less than expected as well. Now you have people talking rate cut in September now, and we'll get Powell later today, of course, and he could either pour cold water on that, or he could say, "Sure, maybe it's on the way. We're on the right track." In a background where I had, I mean, he wants to see three good numbers, not one. So let's understand that he's not necessarily going to embrace the concept that happy days are here again, even as we had, and I got this from Walmart this very morning, our largest grosser for exclusive CMC Investing Club, what went down? Okay, so you take poultry, that's a staple for America. That was $3. Now it's down to $2.68, soft drinks, two liter, $1.42 down to $1, French bread, just an example of what we all have to, you know, bread is a staple in this country, $1.50 down to $1, and they've lowered the price of milk, they said they won't be our price, and they noticed that avocados are down substantially. Now why do I mention these? Because you need to know the makeup of how incredible the declines are in produce, in gasoline, and one that we've been waiting for is auto insurance and property gasoline. These are all the stuff of daily, okay? And you talked about how gasoline is daily. Yeah, I mean, if you drive to work, you got to fill up your car, you mentioned Walmart, but Costco doing the same thing too, they're almost, they want to be a price to go on the grocery side, the fresh side as well. I don't know if we have a Costco chart, but that's a very good example of, they can out Walmart because they have fewer, what's known as SKUs, shopkeeping units. So the ones that they do have, they are able to drive amazing bargains. Yeah, that's a great point as well. They reported monthly sales last week, the quarter not too long ago, all pretty solid stock running, even without that elusive membership scene increase. Start your day with my outlook on the market every morning. Visit cbc.com/morningtake to become a CNBC Investing Club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. If you're the full CNBC Investing Club disclaimer, please visit cbc.com/investingclubdisclaimer. Imagine earning a degree that prepares you with real skills for the real world. Capella universities programs teach skills relevant to your career so you can apply what you learn right away. Learn how Capella can make a difference in your life at Capella.edu. [BLANK_AUDIO]